In our agency we use language similar to
that suggested in Miller, which references
additional charges and suggests consumers
call to verify the balance at time of payment.
Consider the opposite side of the safe
harbor language for a minute. Do we then
have an obligation to include language that
the balance will not increase if no interest is
charged; or do we have an obligation to not
include such language?
The Seventh Circuit's decision in Boucher
v. Fin. Sys. Of Green Bay, Inc. may suggest
just that. In this case the consumer received
a collection letter for a medical debt that
included the safe harbor language from
Miller. This debt did not have any interest
accruing. The court reasoned that the debt
collector in this case did not qualify for the
immunity the safe harbor language usually
provided, "because [the debt collector] could
not lawfully impose 'late charges and other
charges.' Therefore, [the debt collector] is not
entitled to safe harbor protection."
If our notice includes language such
as that listed earlier and the debt is not
incurring interest or other fees, it may be
false, misleading or deceptive as it could
imply an outcome that isn't possible-the
amount of the debt growing due to interest
and fees. In light of the Seventh Circuit's
decision, we must evaluate the debt we
are collecting, making sure disclaimer
language makes sense in order to avoid
possible liability.
1099C DISCLOSURES
Creditors and debt purchasers may
be required to file Form 1099c when
discharging or settling more than $600
if certain triggering events occur. ACA
International's SearchPoint™ document
#2324 notes that "while collection
agencies are not required to file Form
1099c, their clients may contract with
them to file or maintain the information
necessary to file the form."
There was a time in our industry when
clients routinely required us to notify
Mark Your
Calendar
for Fall!
ACA INTERNATIONAL
FALL FORUM & EXPO
2018
COLLECTOR 07.18
CHICAGO
NOV 7-9
THE DRAKE
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